Note 11. Equity Incentive Plans and Stock-Based Compensation

As of September 30, 2025, the Company had a remaining allocated reserve of 0 shares of its common stock for issuance under its 2021 EIP, which provides for the granting of stock options, RSUs and stock appreciation rights to employees, directors, and consultants of the Company. As of September 30, 2025, the Company had an allocated reserve of 148,897 shares of its common stock for issuance under its 2021 Employee Stock Purchase Plan (“2021 ESPP”). As of September 30, 2025, the Company had not begun any offering periods for the 2021 ESPP.

Stock options

As of September 30, 2025and December 31, 2024, there is no aggregate intrinsic value of options outstanding.

As of September 30, 2025, total unrecognized compensation cost related to options was immaterial and is expected to be recognized over a weighted-average period of less than a year.

For the nine months ended September 30, 2025, there were no options granted.

Restricted Stock Units

The fair value of RSUs under the Company’s 2021 EIP is estimated using the value of the Company’s common stock on the date of grant.

The aggregate intrinsic value of outstanding RSUs is calculated based on the closing price of the Company’s common stock as of the date outstanding. As of September 30, 2025, there was $22.9 million of unrecognized compensation cost, which is expected to be recognized over a weighted average period of approximately 3.4 years. As of September 30, 2024, there was $17.8 million of unrecognized compensation cost, which was expected to be recognized over a weighted average period of approximately 2.5 years.

Earnout Shares––Employees

The Earnout Shares issuable to holders of employee stock options are accounted for as stock-based compensation expense as they are subject to forfeiture based on the satisfaction of certain employment conditions. The estimated fair values of the Earnout Shares associated with vested stock options are recognized as an expense and determined by the Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the five-year earnout period. The portion of the Earnout Shares associated with unvested stock options are recognized as an expense and consider the vesting continuing employment requirements.

Stock-based Compensation Expense